Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Peabody Energy Corp. rose more than 7% after Thomist Capital Management LP disclosed a 9.96 percent stake and urged the coal miner to buy back shares.
Thomist suggested to Peabody management that the company should use some of its $1.45 billion cash balance to repurchase stock, get more value out of its Powder River Basin assets, and sell a stake in its Centurion mine in Australia, according to a filing Tuesday. Peabody was up 7.4% to $24.22 at 9:38 a.m. in New York on Wednesday.
Peabody’s filing came as Arch Resources Inc. and Consol Energy Inc. agreed to combine in an all-stock merger to create Core Natural Resources, a producer and exporter of coal.
(By Josh Saul)
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